Consumer Behavior Final Exam Reviw

Chapter 12:
Family Consumption Roles
o Consumption Roles are all about how people work and consume within a family. These are very important to marketers because a family serves as a Consumer Unit. o Socialization: the process by which we develop relevant behavioral patterns gained within the confines of technological advances as well as through interaction with others. In other words this is the process by which children learn the rules of the world through family interaction. Factors affecting the degree of parents influence on children: Age of child Familys social class Childs sex Family characteristics (e.g., strict vs. permissive parents) Whether or not the family is online

Role Specialization affects the decision making process and types of purchases.
o The term enacted role infers the actual overt behavior displayed by an individual in a particular capacity. o The term perceived role is an individuals assumed obligation in the execution of a particular chore. o The term prescribed role reflects the expectations of others regarding appropriate modes of behavior for a person in a particular capacity.

8 Family Consumption Roles

o Influencers: members whose opinions affect product purchase o Gatekeepers: members who regulate the flow of information into the household o Deciders: members with the authority to make decisions o Buyers: members who act as purchasing agents

o Preparers: members who ready a product for consumption o Users: members who use or consume a product o Maintainers: members who attend to the upkeep of a product o Disposers: members who determine when and how to discard a product

Husband & Wife Decision Factors

o Factors influencing the roles of husband and wife in family decisions: Egalitarianism: a value stressing equality in marital relations Involvement: relevance assigned by a spouse to an activity Empathy: emotional participation in the feelings of the other spouse Recognized authority: a right to decide assigned to one spouse

The Family Life Cycle

o The Traditional FLC: Bachelorhood stage Young, single men and women who have established households apart from their parents. Apt to spend their incomes on rent, basic home furnishings, the purchase and maintenance of automobiles, travel and entertainment, and clothing and accessories. Frequently have sufficient disposable income to indulge themselves. Honeymooner stage Parenthood stage Postparenthood stage Dissolution stage o Modernized FLC This is anyone NOT going through the Traditional Family Life Cycle Could be a childless family, a same-sex family, a career oriented family, a marriage with a pre-existing child, etc. Nonfamily households consist of single persons, unmarried couples, divorced persons without children, and widowed persons.

 Around 85 percent of all U.S. households fit the nontraditional family mold.
Latchkey kids: children who return from school to a locked and empty home while their parents are away at work Around one-third of all school age children (around 5 to 7 million) are latchkey kids. Boomerang children: grown adults who continue to live or return to their parents home In 2005, 39 percent of single women and 46 percent of single men ages 20 to 29 years old lived with their parents. Single parenthood: households that are headed by a single parent continue to rise in number, reaching over 13.6 million in 2007. Divorces have been as responsible for this trend as births without marriage. The live-alones: the number of men and women who live alone continues to rise. In 2005, there were 17.4 million single-female households and 13 million single-male households. This segment constitutes a lucrative market for items such as travel, convenience food, clothing, sporty automobiles, as well as dating services.

Generational Marketing
o Serves as basis for market segmentation o Identifies differences in behaviors and response patterns of each cohort o Helps marketers select appropriate promotional appeals for each targeted cohort o Postwar cohort: born between 1928 and 1945 Lived through the period of economic growth and social tranquility that followed WWII causing members to seek material possessions to alleviate lifes uncertainties. o Boomers I cohort: born between 1946 and 1954 Known as Woodstock generation, tends to live beyond its means and enjoys conspicuous consumption. o Boomers II cohort: born between 1955 and 1965 Has ingrained sense of entitlement and tends to pursue goals of selfinterest and instant personal gratification. o Generation X cohort: born between 1965 and 1976 Tends to be unhappy about economic problems and displays somewhat contradictory behavior. Many Xers are the dotcom world changers and engaged leaders of various causes.

o Generation Y Cohort: born between 1977 and 1994 Often described as idealistic, socially conscious, and individualistic Tends to be anti-corporate, to speak its mind, and to dress at is pleases o Generation Z Cohort: born between 1995 and 2008 The children or early teens of older and wealthier parents who have fewer siblings Intensively exposed to and experienced with the digital world

Chapter 13:
Word Of Mouth o Personal Influence
Any change in a persons beliefs, attitudes, or behavior that occurs as a consequence of interpersonal communication Personal influence can be verbal, visual, or both; and can have more effect on the purchase decision than commercial sources of information. person-to-person communication between a noncommercial source and a receiver

o WORD OF MOUTH

Opinion Leaders - knowledgeable, influential individuals, such as experts, gurus, and

mavens who casually provide advice to others. o They have gained this knowledge through their own personal interest, and through their wide range of connections to other people they are able to heavily interest others. o They process marketers communication and translate messages to the rest of us

Agents Of Change - parties who actively seek to modify our beliefs, attitudes, or
behavior. o These people are trying to get you to convert to their choice of products. These people tend to spend a lot of time on the internet. o E-fluentials: individuals who exert an exponential influence in shaping and driving public opinion through the Internet

Purchase Pal
o Usually a neighbor, classmate, or work colleague. o The Purchase Pals main contribution tends to be functional the sources specific product experiences and general marketplace knowledge are being relied on. o When its a person to whom the shopper shares a strong tie: What is being relied on is the purchase pals familiarity and understanding of the buyers individuals characteristics and needs.

Surrogate Buyer o Usually someone like a Wardrobe Consultant, a Doctor, or a Service o o o o

Specialist. Usually have a more formal relationship. Usually for pay. High Level Of Accountability. Usually specializes for a specific product or category.

Five Models of Information Sharing

o The Hypodermic Needle Model The mass media has an immediate, direct, and forceful impact on a captive mass-audience. This started with political observations. Says that ALL THE INFO PEOPLE LEARN COMES DIRECTLY FROM THE MEDIA. (Not so true anymore) o The Trickle-Down Model Says that personal influence passes from higher-status influencers to classes below them Basically, celebrities and important people discuss and show off products and we as consumers adopt the products. o The Trickle-Up Model Says that products or styles originating among the typical emulators or recipients gain acceptance among the elite and celebrity influencers Says that things like fashion, music, and the like start on the streets and is adopted by the celebrities. o The Two-Step Model Says that that opinion leaders and e-fluentials mediate the flow of message contents to passive information recipients Think the Diffusion Model (Innovators, Early Majority, etc) Ideal model, because if we could get our message as marketers to influential people, our job would be done. NOT REALISTIC

o The Multi-Step Model Says that information flow is triggered by the mass media and the Net as well as during advice-seeking situations and casual conversations ****REALLY REALISTIC MODEL**** We (as consumers) have conversations in which we give advice separate ones in which we seek advice, and between these conversations is the flow of information from person to person.

Viral Communication
o Basically when Word of Mouth (WOM) catches fire and spreads from person to person, by every method possible. o One reason it works so well is because it feels like its neutral and that its not forcing information down your throat. Vivid WOM custom tailored to a situation Live WOM exchanges occur between individuals Limitless: just a few influencers can ignite a chain reaction Immediate: occurs in a close temporal and spatial situation Memorable: stored in memory with more links to other concepts o ***Growth of the Internet has rendered WOM one of the most powerful communication means. *** o The huge advantage for marketers is that we can go online, read what consumers are saying, and often even identify who these people are and what theyre about.

Identifying Opinion Leaders

o Four methods of identifying opinion leaders: The Sociometric Method: Close scrutiny of interpersonal communication within small communities The Self-Designating Method: Respondents recount their own leadership activities The Key Informant Method: Knowledgeable persons about a group identify likely influential members The Objective Method: Artificially creating opinion leaders o Marketers have spent a long time trying to find these opinion leaders.

Teaser Campaigns
o Teaser campaigns: promotions that drop bits of information and withhold the particulars

Chapter 14:
How Does Social Class Work?
o Social class is fairly universal. You cant fully understand it without looking directly at each class. o Social Class is HARD to see in AMERICAN CULTURE Class distinctions in the United States are subtle due to: Egalitarianism: feelings of equality among people Size of middle class: most people feel they belong to the middle class Mobility: movement on the social ladder Income inconsistency with status: class and income are not well correlated Once you can see it, its an extremely valuable segmentation tool. Social class standing often influences various aspects of consumer behavior, including: Types, quantities, and qualities of acquired products Preference for store brands vs. national brands Choice of where to shop Saving, investing, and spending patterns Credit use Amount of effort expended in search activity Not easy to measure class; also difficult to determine where each person falls in it. Social Class vs. Income People tend to casually equate earnings with social class. Class and income are not very well correlated. For marketers, social class is generally a better predictor than income for most consumer purchases. o Social Stratification: the act of classifying members of a society based on their economic and social standing Social stratification provides one basis that marketers use for segmentation purposes. Databases are developed to identify clusters of consumers with shared characteristics. Marketers then design promotional messages precisely calibrated to each social class needs.

Multi-Tiered Social Class In The US

o The Upper Class (1 percent) Not just having money, but knowing how to behave w/ it. o The Middle Class (45-47 percent) Many symbols are associated with being middle class. Manicured lawn, white picket fence, etc. Husband and Wife Joint Activities o The Working Class (40-43 percent) o The Under Class (12 percent)

Methods of Measuring Social Class

o Subjective Measures: respondents classify themselves on the social ladder. o Reputational Measures: individuals in a group rank others social-standing. o Objective Measures: class membership is based on assessing one or more demographic and/or socioeconomic variables. o Objective investigations of social class employ one of two methods: Single-variable indexes: the researcher uses a single indicator of class membership such as occupation or income to assess class standing Composite-variable indexes: the researcher uses a weighted average of several socio-economic measures to calculate an overall index of a persons class standing

Status Crystallization
o Status crystallization vs. incongruity Status crystallization is the extent to which our social-status indicators (e.g., income, possessions, education) coincide with one another. Marketers are interested in pinpointing incongruities--exceptions to the phenomenon of status crystallization. ***Basically, if you look at all the stuff you have, and its in-line with your class, than your status is crystallized.*** Incongruity - means that your status isnt shown in your characteristics.

Chapter 15:
The Meaning Of Culture
o Culture Is: A societys distinctive and learned mode of living, interacting, and responding to environmental stimuli This mode is transmitted and shared between its members. o Culture Is Acquired Through: Socialization: the process by which we acquire knowledge, skills, and morals necessary to function productively in a society Enculturation: the process of introducing youth with societys norms and values Acculturation: the process of learning the norms, values, and behaviors of a different culture o Culture includes both material (tangible) and abstract (intangible) elements. The tangible and intangible components of a culture do not necessarily evolve at the same pace. Mechanical and technical traits can mature quickly, while ideological traits may linger behind. o Cultural Lag: Is the delay between rise of a technological innovation and the point of publics acceptance or rejection of it.

Ethnocentrism
o Is the tendency to make cross-cultural evaluations based on ones own beliefs and values. In todays diverse culture, we must maintain cultural sensitivity by accepting and respecting the views and actions of others even though they may be markedly different than ours.

Cultural Assessment Techniques

o Ethnography: using unobtrusive observation of people in a culture. o Direct Questionnaires: using research instruments to ascertain cultural tendencies. o Content Analysis: reviewing a cultures media and literature output. o Key Informants: soliciting views of experts on a culture.

Hofstedes Cultural Dimensions

o Cultures can be assessed by noting their stance on: Power Distance Uncertainty Avoidance Individualism Masculinity Term Orientation o Power Distance The degree to which less powerful members of a society accept the fact that power is not distributed equally In high-power distance cultures, people obey authority without question. In low power-distance cultures, people are seen as equals. Implications of power distance extend to decision making and promotional strategy. o Uncertainty Avoidance The extent to which people feel threatened by ambiguous situations, as well as their reaction to such threats In high uncertainty avoidance societies, people have low tolerance for risk and feel the need to counter it. In low uncertainty avoidance societies, people are willing to assume greater risk, and feel less need to restructure their activities to avoid it. Implications of uncertainty avoidance extend to adoption and branding decisions. o Individualism The tendency of people to look after their own self interest rather than the interests of an entire group In societies high on individualism, people tend to be inner directed and make individual decisions based on their own values. In societies low on individualism, people tend to place greater importance on group affiliation and approval of others. Implications of individualism extend to promotional messages deemed appropriate for different societies. o Masculinity The degree to which the dominant values in a society are success, money, and things In societies high on masculinity, people place greater importance on earnings, material possessions, and achievement. In societies low on masculinity, people care for others and tend to be concerned about the environment as well as quality of life. Implications of masculinity extend to the fields of segmentation, targeting, and positioning.

o Team Orientation A cultures mode of viewing time-related societal aspects such as its past, present, and future, as well as the immediacy of gratification of ones needs In short-term oriented societies, time is of the essence, where people are less patient, place reduced value on the elderly, and seek quick fixes to problems. In long-term oriented societies, people are characterized by patience, perseverance, and respect for the past and elderly; they seek long-term solutions to problems. Implications of term orientation extend to promotional messages.

Microcultures
o Coverage of this topic encompasses both ethnic as well as consumption microcultures. Ethnic microcultures include African American, Hispanic American, and Asian American consumers. Consumption microcultures include the Harley-Davidson Owners Group (HOG) and Dead Heads and the Grateful Dead Organization, among others. o Hispanic Microcultures Can be divided into three acculturation segments: the unaccultured (40 percent), bicultured (32 percent), and the accultured (28 percent) o Consumption microcultures: distinctive subgroups of society that self-select on the basis of a shared commitment to a particular product class, brand, or consumption activity (e.g., the HOG) Such groups are identified by hierarchical social structure, unique ethos, shared beliefs and values, as well as distinctive jargon, rituals, and modes of symbolic expression. o Cultural relevance: understanding a microcultures distinctive values, customs, and aspirations Marketers should present products and promotions in light of these unique characteristics. Marketers should avoid symbols, icons, and values that are meaningless to a particular microculture.